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Note from the Credit Desk

Andrew James Labbad

Andrew James Labbad

Sr Portfolio Manager


Here is a quick update on the live market conditions from Amplus Credit Income Fund’s Senior Portfolio Manager, Andrew James Labbad.

For the month of September, we have seen some notable moves in different indices and asset classes as shown below. Volatility has picked up with headlines involving Evergrande’s debt burden, the effects of possible bond tapering starting in November and a sudden surge in bond yields. This has caused investors to reposition their portfolios which we have previously touched on in our August Fund update.

On September 28, 2021, we saw equities indices lose generally 1-2%, with 10-year treasury yields rising 5bps.

Amplus has been well-positioned for this type of market move. Hedging out the underlying interest rate risk has protected our investors from this month’s draw-down due to a rise in yields. Our tactical hedges for heightened volatility have paid dividends. We are pleased with the performance in our credit strategy for the month, and we look forward to updating you next month with our performance and outlook.

Amplus

Amplus

Historic low rates and unprecedented quantitative easing from central banks have created ample opportunities of market spreads divergence globally. Amplus Credit Income Fund aims to maximize positive risk-adjusted returns in a rising market, while protecting investors from market risk in a downturn. By employing a diverse arsenal of investment strategies, Amplus is designed to capitalize on market inefficiencies and mispricing while minimizing interest rate exposures.

Amplus Credit Income Fund subscribes to a flexible investment style with primarily debt securities such as bonds, preferred shares, and convertible notes. We have the global relationships to invest in different currencies, taking advantage of the best value.

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